In fact, the PMI rose by 0.9 points from May to
a record high of 57.1 in June, marking its
highest reading since October 2010 when the
survey began. PMI readings of above 50.0
indicate growth in manufacturing.

In the June survey, manufacturers reported the
fastest rise in production levels for five
months while new work expanded at the strongest
pace since November 2013.

Survey respondents commented on greater demand
from both domestic and export markets.

Meanwhile, robust demand for raw materials in
June contributed to the strongest rate of input
cost inflation since April 2011, with survey
respondents commenting on higher prices for
steel and aluminium, in particular.

“June data signalled impressive growth momentum
across the manufacturing sector, with business
conditions improving at the fastest pace since
the survey began in 2010,” said SCMA’s CEO,
Christian Buhagiar.

“Strong improvements in new order books in
recent months continued to place pressure on
production capacity, which led to rising
backlogs and greater staff recruitment in
June,” he said.

SCMA conducts the monthly PMI survey in
cooperation with research firm IHS Markit.

In the medium term, however, Canada risks
plunging into a recession by 2020 if US
President Donald Trump should go through with
his threats of imposing stiff tariffs on autos,
light vehicles and auto parts imported from
Canada, economists at Toronto-based Scotiabank
warned in a report.

As Canada’s second-largest export sector after
energy products, the auto sector depends
heavily on tariff preferences under the North
American Free Trade Agreement (NAFTA).

As such, auto tariffs would hit the economy of
Canada’s largest province, Ontario,
particularly hard, the bank said.

“Canada’s trade skirmish with the US is set to
escalate in ways that could quickly turn it
into a full-on trade war that could tip both
countries into recession”, it added.

Canada began imposing from 1 July retaliatory
tariffs on US steel and aluminum products, as
well as a range of US consumer goods.

However, there were hardly any counter-tariffs
on imported chemical products, industry
officials have told
ICIS.